Test Your Money Smarts is a ten question quiz located on the U.S. Securities and Exchange Commission?s website that tests an individual?s very basic investing literacy regarding stock, bonds, mutual funds, savings, among others. Answer options include ?I don?t know?. Feedback is provided for each question before users can proceed to the next question. A nice paragraph explanation is provided for each question.
To test someone?s basic financial literacy with respect to investing.
Target Student Population:
High school, college, or other individual who wnat to test himself or herself on investing fundamentals
Prerequisite Knowledge or Skills:
The very basics of financial literacy about stocks, bonds, mutual funds, and investing.
Type of Material:
This module could be used as a self-test, pre-test in on online course, or in class demonstration.
Internet Browser. Workes with Netscape Communicator 4.7 and latest version of Internet Explorer. Given the module is at the SEC.gov site, it is probably constructed to be used with multiple browsers.
Evaluation and Observation
According to a Personal Financial Literacy Survey released by the Jump$tart Coalition in April of 2002, only 50% of high school seniors were judged as having sufficient skills to manage their money (http://www.jumpstartcoalition.org/upload/news.cfm?recordid=99). Given this fact, this quiz is extremely current and relevant. Content is accurate. A complete explanation of each concept is provided in the form of feedback with excellent examples used where applicable. The module is self-contained and integrates concepts well.
The quiz is brief and consists of very few questions.
Potential Effectiveness as a Teaching Tool
As a test of the very elementary basics of investing literacy, this quiz is very good. It serves to reinforce understanding someone already should possess upon entering college or acts as a wake up call. Concepts appear to be introduced and reinforced progressively. The module is very efficient and can be completed in a very short time.
No objective other than ?testing one?s money smarts? is given. Therefore, why certain questions were chosen is unclear, although the focus seems to be on stock, bonds, mutual funds, and savings. No prerequisite skills are identified. All explanations are the same regardless the option selected by the user, other than the ?correct? or ?incorrect? reply. Many of the quiz questions use a sentence completion form which requires the user to read all choices to determine what the question is asking. According to experts on the construction of multiple-choice questions, this is not the most effective way to present quiz/test items.
Ease of Use for Both Students and Faculty
The purpose of this quiz is not drill and practice, but an assessment of financial literacy and for this type of tool its design is sufficient. Test Your Money Smarts is easy to read and understand,
and it has a very simple layout that is effective. No navigation problems exist. Color selections are visually appealing.
Interactivity is limited to clicking on the quiz answer.